April 4 (SeeNews) - Romanian real estate developer One United Properties [BSE:ONE] said on Thursday it has signed a memorandum of understanding (MoU) with Luxembourg-based CPI Property Group for the acquisition of a plot of land spanning 21 ha.
One United plans to use this plot, located in sector 4 of the capital Bucharest, to develop a small, self-sustainable neighbourhood comprising around 5,000 units as well as amenities such as green spaces, educational facilities, retail spaces, and a community health centre, it said in a filing to the Bucharest Stock Exchange, BVB.
The price of the purchase was not disclosed.
The project will target the upper tier of Bucharest’s residential mass market, marking the company's entry into the segment of affordable premium housing, as per the statement. One United estimates the first phase of the project will be completed in 2028.
Last month, One United requested its shareholders to temporarily give up pre-emption rights during their general meeting scheduled for April 25. A potential approval of this request will enable One United Properties to increase its capital by up to 20% over the next three years. The company also proposed to its shareholders to endorse a potential bond issuance worth up to 300 million euro that it will pursue if rates ease in the future.
Recently, One United Properties partnered with global hospitality company Ennismore to open a hotel in Bucharest.
Established in 2009, One United Properties is a green investor and developer of residential, commercial and office real estate. In 2023, the company booked a net profit of almost 443.2 million lei ($96.1 million/89.2 million euro), down by an annual 12%.
Blue-chip One United's shares traded flat at 0.98 lei as at 0924 CET on Thursday on the Bucharest bourse.
(1 euro=4.9689 lei)